MD_DA530                                                         
DA                                                               
MD DA530 Dry Whey - Central                                      

MADISON, WI.  July 7, 2016 (REPORT 27)                         

DRY WHEY - CENTRAL       

Dry whey prices in the Central region are higher on both ends of the 
mostly prices series. The bottom end of the range price series moved 
higher while the top end held steady. As Q3 begins, changes on 
contract indices pulled prices higher in many instances. Production is 
active to increasing as some Midwest cheese manufacturers fill up 
production schedules. Several dry whey manufacturers report an 
increase in demand. Some market participants are receiving calls from 
end users looking to buy ahead. They speculate end users are looking 
at 2017 Q1 pricing and are trying to manage the anticipated price 
climb. A few manufacturers report being unable to meet requests from 
buyers interested in additional loads outside of contracts. Interest 
from international buyers is steady. Inventories are mixed. Some 
market participants believe there are still sizeable inventories of 
whey in the Midwest. However, several manufacturers and brokers do 
report significant stock relief recently. For some contacts, dry whey 
is being sold before it sees a storage shelf. The market undertone is 
firming. Animal feed whey prices are steady this week in the Central 
region. Production is active and scheduled to meet contracted needs. 
Spot sales are light. Feed blenders report comfortable inventories. 
The market undertone is steady. The DMN monthly average of the mostly 
price series for Central dry whey during June was $0.2450, compared to 
$0.3773 a year ago. The monthly average of the range price series for 
Central animal feed whey during June was $0.1709, compared to $0.2586 
a year ago. The NASS Dairy Products report noted U.S. total dry whey 
production for May 2016 was 81.8 million pounds, up 3.1 percent from a 
year ago. January-May U.S. total dry whey production totals 405.9 
million pounds, 2.1 percent ahead of the same time span in 2015. The 
Central region accounted for 49.6 percent (39.8 million pounds) of 
U.S. human dry whey production in May. This production is 1.2 percent 
higher than a year ago. Total U.S. dry whey human month ending stocks 
for May were 85.7 million pounds, 16.8 percent above a year ago. 

U.S. Dry Whey Exports. H.S. Code 0404104000(FAS)
                 2016 Exports      % Change From 
                 (Million Lb.)       1 Year Ago

May Total                 35.8           - 20
 
TOTAL, JAN - MAY         146.7           - 20
 1 China                  36.3           - 34
 2 Canada                 19.8           + 2
 3 Mexico                 14.9           - 20
 4 Japan                  10.7           + 3
 5 Philippines            10.4           - 30
 
                                                                
F.O.B. CENTRAL:    .2250 - .3500   MOSTLY:    .2350 - .2750      
F.O.B. CENTRAL: ANIMAL FEED MILK REPLACER:    .1300 - .2125      
     

1100CT Amy.L.Schmitz@ams.usda.gov 608.557.7004
USDA/AMS/Dairy Market News, Madison, Wisconsin
Dairy Market News website: http://www.ams.usda.gov/market-news/dairy
Dairy Market News database portal: 
http://www.marketnews.usda.gov/mnp/da-home